Question

Current unemployment rate of 20%, with evidence of still many businesses shutting down all over the country. What Psychological problems business owners can face?

Answer 1

With increasing unemployment rate the result will be a recessionery situation and also falling levels of disposable income. This will mean that the spending levels of people will fall as the economy slows down.Business owners will thus face the problem of a constant turnover of their labour force as they hire and fire workers to reduce costs. Business owners will also have to perform a balancing act between keeping their workers happy and cutting costs. Business owners will also have to think of the possinbility of going out of business themselves or hiring an uncertain quality of workers from a pool of unemployed.